Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (71522)	7/23/2002 7:29:54 PM
From: David Howe	Read Replies (3) \| Respond to of 74651

I calculate the forward PE as $42 / $1.90 = 22 Not bad for the strongest company in the world. One of the few tech companies that still turns in fantastic operating results while the rest of them turn in losses. The cash ($8 per share and growing) does count for something. Even something beyond the income it generates. WCOM would not be trading at .14 if they had cash instead of debt. With that said, the stock can go to just about any value during a bear market. There you go. The value of cash is that it probably won't trade below that value; around $8. <g> IMO, Dave

To: Dave who wrote (71522)	7/23/2002 7:32:13 PM
From: alydar	Respond to of 74651

not only that dave, but the market is pricing msft stock as though they will have to expense stock options going forward. everybody is going want to be gaap compliant and the expensing of stock is going to be the norm. msft and a few other companies abused a perfectly good stock option system that WAS part of the capatilistic system. how low will msft go? good question. first, they need to repurchase about 28 billion of their stock on the open market NOW. of course they will not do that because management knows the stock is overvalued and they will have to pay taxes on the capital gains. my god, gates and ballmer paying taxes; that would be a first. second, they need to get a cohesive marketing strategy backed by quality products. easier said than done. third, between 20-40 percent of their operating profits are going bye-bye with the expensing of option. how do you make that profit up to justify a lofty stock price. lastly, as mr. tutt has stated, msft's outcome in the anti-trust trial is an unknown and wall street hates uncertainty. msft stock is just entering the dog house just like every other tech co. out there and they have just begun to experience the pain of crashing equity value. welcome to the club. rocky.